Key Takeaways
- Almost half of Americans said better financial planning was one of their 2024 New Year’s resolutions, the most with that answer in three years, according to an Allianz survey.
- Paying down credit card debt, creating an emergency fund, and increasing retirement savings were the most popular financial New Year’s resolutions.
- Only about a quarter of people who said they got raises this year said it was enough to cover the cost of living.
- One in three respondents said they had reduced spending in 2023, while about a quarter said they looked at options to make additional money.
According to the 2023 New Year’s Resolutions Study from Allianz Life Insurance Co., 48% of Americans surveyed said that they are likely to make and keep a resolution for better financial planning in 2024. That’s up from 43% last year and 33% in 2021.
Americans are increasingly concerned about money, with 40% of survey respondents saying they are more stressed about their finances at the end of 2023 than a year ago, up from 34% in 2022. The financial concerns came as people faced new pressures, like higher interest rates, persistent inflation, and increasing debt payments, including resumed student loan repayments.
While inflation cooled throughout the year, it continued to weigh on Americans. Of the 29% of respondents who received a pay increase in 2023, only 27% said it was enough to keep up with the cost of living. Looking forward, it remains a major concern, with 69% of those surveyed saying the rising cost of living would affect their ability to save for retirement.
So what resolutions are Americans making to improve their financial outlook in 2024? The most popular answers were creating an emergency fund and increasing retirement savings, each garnering 17% of responses while paying down credit card debt was the plan for 16%.
On the bright side, many respondents said they had improved their financial habits in 2023 by reducing spending (36%), exploring ways to make additional income (23%), or increasing meal planning to limit restaurant checks (22%).